‘LaMode factory didn’t violate SGMA’s code’

The current delayed wage payments to employees of LaMode (Saipan), Inc. has not resulted in violations of SGMA’s Code of Conduct for LaMode, according to Saipan Garment Manufacturers Association spokesperson Richard A. Pierce.

He said that LaMode, an SGMA member company, executed notification and reporting requirements under the SGMA Code of Conduct, and, “as always, we have tried to assist any company that has demonstrated the good faith efforts that LaMode has exhibited with its employees, the federal and local government enforcement offices and our association.”

“We are all behind LaMode doing whatever they can, with assistance being offered by this association and government offices, to pay whatever remaining wages the employees are entitled to, and find employment for those employees that want to remain in Saipan to work in other companies willing to offer them positions. And, we know that all their employees will be paid,” said SGMA.

“While the employees will be paid, unfortunately, we are not in a position to say whether LaMode will remain a company in operation. This remains to be seen. We do know that many of their employees are being allowed to seek employment elsewhere, and that the company has been subsisting on orders from other companies for quite awhile.”

SGMA assisted LaMode before they ever attempted to join SGMA. Early infrastructure difficulties caused LaMode extreme financial hardship, as government utility service was denied due to questionable contractor permitting guarantees.

“This is a shame to see this company end up this way. LaMode is a U.S.-owned company and was never really allowed to get off to a good start. They now face a new global competition that has many of Saipan’s smaller factories near the brink of non-profitable operations,” Pierce said.

“We are confident that this matter will be handled appropriately and effectively by all involved, but we reiterate that the situation will get worse, and not better, for factories in Saipan trying to adjust to the changes that are coming very quickly now as quota restrictions no longer exist for World Trade Organization Members, and the competition just gets tougher.”

SGMA reported sales for January 2005 at $63.3 million. This is an 18.5 percent drop from last month’s December sales figures of $79 million. Also, January 2005’s sales represented the smallest January since 1997.

“It’s happening quickly now, we are trying to mount an effort to save this industry, and we just hope everyone can see—through LaMode’s very real problems in paying their employees—that this is a very scary scenario for us, and those that depend upon our businesses to support them, as well,” said Pierce. (PR)